SUPPLEMENTARY FINANCIAL INFORMATION - Scotiabankorigin.scotiabank.com/ca/common/pdf/about_scotia/supplementary18660.pdf · ($ MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006 CONSOLIDATED

Page PageHighlights 1 Balance Sheet 11

Common Share and Other Information 2 Average Balance Sheet 12

Consolidated Statement of Income 3 Consolidated Statement of Changes in Shareholders' Equity 13

Net Income available to Common Shareholders Credit Quality by Business Segment 3 - Gross Impaired Loans 14

- Change in Gross Impaired Loans 15 Business Segment Performance - Net Impaired Loans 16 - Domestic Banking 4 - Allowance for Credit Losses 16 - International Banking 5 - Scotia Capital 6 Cross-Border Exposures to Select Countries in Asia and Latin America 17 - Other 7

Asset Securitization 18 Net Interest Margin 8

Available-for-Sale Securities - Unrealized Gains (Losses) 18 Trading Revenue 8

Interest Rate Sensitivity 18 Assets under Administration and Management 8

Basel II Appendix 19 - 28Other Income 9

Non-interest Expenses 10

For further information contact: Kevin Harraher - (416) 866-5982 or Mahendra Shah - (416) 866-7579

SUPPLEMENTARY FINANCIAL INFORMATION

July 31, 2008

INDEX

HIGHLIGHTS

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006Operating Performance:Net Income ($MM) 1,010 980 835 954 1,032 1,039 1,020 897 936 2,825 3,091 4,045 3,579 Net Income available to Common Shareholders ($MM) 978 958 814 938 1,016 1,028 1,012 890 928 2,750 3,056 3,994 3,549 EPS ($) - basic 0.99 0.97 0.83 0.95 1.03 1.04 1.02 0.90 0.94 2.79 3.09 4.04 3.59 - diluted 0.98 0.97 0.82 0.95 1.02 1.03 1.01 0.89 0.93 2.77 3.06 4.01 3.55 ROE (%) 21.0 21.4 18.3 21.0 21.7 22.4 22.1 21.1 22.8 20.3 22.2 22.0 22.1 Net Interest Margin (%) (1) 1.79 1.76 1.79 1.87 1.86 1.93 1.91 1.89 1.98 1.78 1.90 1.89 1.95 Productivity Ratio (TEB) (%) 54.3 54.8 56.5 54.4 53.0 53.8 53.6 56.9 53.8 55.1 53.5 53.7 55.3 Effective Tax Rate (%) 21.7 17.0 18.2 17.1 21.8 21.1 21.0 18.0 20.2 19.1 21.3 20.3 19.2 Effective Tax Rate (TEB) (%) 27.3 23.3 26.4 29.9 27.2 27.0 26.8 26.5 26.3 25.7 27.0 27.7 26.3

Cash Net Income available to Common Shareholders ($MM) (2) 987 966 821 946 1,023 1,035 1,020 898 934 2,774 3,078 4,024 3,574 Cash EPS ($) - basic (2) 1.00 0.98 0.83 0.96 1.04 1.04 1.03 0.91 0.95 2.81 3.11 4.07 3.62 - diluted (2) 0.99 0.97 0.83 0.96 1.03 1.03 1.02 0.90 0.93 2.79 3.08 4.04 3.57 Cash ROE (%) (2) 21.2 21.6 18.5 21.1 21.9 22.6 22.2 21.3 23.0 20.5 22.4 22.2 22.3

Balance Sheet:Total Assets ($B) 462.4 452.6 449.4 411.5 408.1 411.7 396.5 379.0 365.0 Loans and Acceptances ($B) 283.7 267.9 260.5 238.7 233.0 226.3 222.7 212.3 202.9 Deposits ($B) 332.5 322.4 316.8 288.5 287.0 291.6 277.0 263.9 255.2 Common Shareholders' Equity ($B) 18.8 18.2 18.1 17.2 18.4 18.7 18.9 16.9 16.5

Credit Quality:Net Impaired Loans ($MM) (3) 1,009 845 689 601 584 579 579 570 479 General Allowance for Credit Losses ($MM) 1,323 1,323 1,298 1,298 1,298 1,298 1,323 1,307 1,330 Net Impaired Loans as % of Loans and Acceptances (3) 0.36 0.32 0.26 0.25 0.25 0.26 0.26 0.27 0.24 Specific Provisions ($MM) 159 153 111 95 92 45 63 92 74 423 200 295 276 - % of Average Loans and Acceptances 0.23 0.24 0.18 0.16 0.16 0.08 0.12 0.18 0.15 0.22 0.12 0.13 0.14

Capital Measures (4):Tier 1 Capital Ratio (%) 9.8 9.6 9.0 9.3 9.7 10.1 10.4 10.2 10.0 Total Capital Ratio (%) 11.5 11.7 10.2 10.5 10.6 11.4 11.7 11.7 11.6 Tangible Common Equity Ratio (%) 7.6 7.5 7.2 7.2 7.7 8.0 8.4 8.3 8.4

Risk-Weighted Assets ($B) 225.8 218.9 234.9 218.3 219.8 213.1 206.8 197.0 190.3

(1) Net Interest Income (TEB) as % of Average Total Assets.(2) Excludes amortization of intangibles (net of taxes).(3) Net Impaired Loans are Impaired Loans less Specific Allowance for Credit Losses.(4) Effective Q1/08, regulatory capital ratios are determined in accordance with Basel II rules. Comparative amounts for periods prior to Q1/08 were determined under Basel I rules.

FULL YEAR2006

YEAR-TO-DATEQUARTERLY TREND20072008

Page 1

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006Valuation:Book Value per Share ($) 18.99 18.45 18.40 17.45 18.71 18.90 18.99 17.13 16.66 18.99 18.71 17.45 17.13

Share Price ($) - High 52.51 50.00 54.00 53.49 54.67 54.73 53.39 49.50 47.24 54.00 54.73 54.73 49.80 - Low 41.95 42.00 43.10 46.70 48.91 49.34 48.80 45.36 41.55 41.95 48.80 46.70 41.55 - Close 49.98 47.82 48.19 53.48 49.45 53.39 50.76 49.30 45.55 49.98 49.45 53.48 49.30

Share Price (Closing) as % Book Value 263.2 259.2 261.9 306.5 264.3 282.5 267.3 287.8 273.4 263.2 264.3 306.5 287.8 Price (Closing)/Earnings Ratio (X) (1) 13.4 12.7 12.5 13.2 12.4 13.7 13.5 13.7 13.0 13.4 12.4 13.2 13.7 Market Capitalization ($MM) 49,475 47,194 47,487 52,612 48,578 52,840 50,397 48,783 45,022 49,475 48,578 52,612 48,783

Dividends:Common Dividends Paid ($MM) 485 463 463 442 445 417 416 386 385 1,411 1,278 1,720 1,483 Common Dividends/Share ($) 0.49 0.47 0.47 0.45 0.45 0.42 0.42 0.39 0.39 1.43 1.29 1.74 1.50 Payout Ratio (%) 49.6 48.4 56.9 47.1 43.7 40.6 41.2 43.3 41.5 51.3 41.8 43.1 41.8 Dividend Yield (%) 4.1 4.1 3.9 3.6 3.5 3.2 3.3 3.3 3.5 4.0 3.3 3.4 3.3

Shares:Number of Common Shares Outstanding at Period End (MM) 990 987 985 984 982 990 993 990 988 Average Number of Common Shares Outstanding (MM) -- Basic 989 986 985 983 988 992 991 989 988 986 990 989 988 -- Diluted 994 992 992 991 996 1,001 1,001 1,000 999 993 999 997 1,001

Share Buybacks:Number of Common Shares Purchased (M) 125 - - - 7,680 4,357 - 777 1,300 125 12,037 12,037 7,648 Average Purchase Price ($) 48.30 - - - 51.47 53.52 - 46.53 44.84 48.30 52.21 52.21 45.71

Other Information:Employees 62,209 62,143 62,002 58,113 57,152 55,926 54,889 54,199 53,095 Branches and Offices 2,557 2,529 2,458 2,331 2,289 2,242 2,225 2,191 2,147 ABMs 5,531 5,476 5,395 5,283 5,127 5,068 5,018 4,937 4,833

Senior Debt Credit Ratings:Standard & Poor's AA- AA- AA- AA- AA- AA- AA- AA- AA- -Moody's Aa1 Aa1 Aa1 Aa1 Aa1 Aa1 Aa3 Aa3 Aa33

(1) based on trailing 4 quarters' EPS.

FULL YEARYEAR-TO-DATE2006

COMMON SHARE AND OTHER INFORMATION

QUARTERLY TREND20072008

Page 2

($ MM)Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

CONSOLIDATED STATEMENT OF INCOME:Interest Income (TEB) 5,603 5,562 5,659 5,578 5,446 5,348 5,194 5,084 4,825 16,824 15,988 21,566 18,122 Interest Expense 3,554 3,589 3,727 3,646 3,533 3,445 3,313 3,301 3,009 10,870 10,291 13,937 11,274 Net Interest Income (TEB) 2,049 1,973 1,932 1,932 1,913 1,903 1,881 1,783 1,816 5,954 5,697 7,629 6,848

Other Income (see Page 9) 1,428 1,299 1,025 1,362 1,389 1,308 1,333 1,216 1,173 3,752 4,030 5,392 4,800 Total Revenue (TEB) 3,477 3,272 2,957 3,294 3,302 3,211 3,214 2,999 2,989 9,706 9,727 13,021 11,648

Taxable Equivalent Adjustment (TEB) 103 100 118 216 101 109 105 131 100 321 315 531 440 Total Revenue 3,374 3,172 2,839 3,078 3,201 3,102 3,109 2,868 2,889 9,385 9,412 12,490 11,208

Provision for Credit Losses 159 153 111 95 92 20 63 32 74 423 175 270 216 Total Non-interest Expenses (see Page 10) 1,889 1,794 1,669 1,792 1,752 1,726 1,724 1,708 1,608 5,352 5,202 6,994 6,443 Net Income before the undernoted: 1,326 1,225 1,059 1,191 1,357 1,356 1,322 1,128 1,207 3,610 4,035 5,226 4,549

Provision for Income Taxes 287 209 193 204 296 286 277 203 244 689 859 1,063 872 Non-controlling Interest in Net Income of Subsidiaries 29 36 31 33 29 31 25 28 27 96 85 118 98 Net Income 1,010 980 835 954 1,032 1,039 1,020 897 936 2,825 3,091 4,045 3,579

Preferred Dividends Paid 32 22 21 16 16 11 8 7 8 75 35 51 30 Net Income available to Common Shareholders 978 958 814 938 1,016 1,028 1,012 890 928 2,750 3,056 3,994 3,549

Amortization of Intangibles (net of taxes) 9 8 7 8 7 7 8 8 6 24 22 30 25 Cash Net Income available to Common Shareholders 987 966 821 946 1,023 1,035 1,020 898 934 2,774 3,078 4,024 3,574

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS BY BUSINESS SEGMENT:

Domestic Banking (1) 455 416 367 434 391 364 361 335 319 1,238 1,116 1,550 1,279 International Banking 321 326 282 353 270 293 316 268 285 929 879 1,232 1,054Scotia Capital 291 251 187 226 276 318 294 235 278 729 888 1,114 1,047 Other (2) (89) (35) (22) (75) 79 53 41 52 46 (146) 173 98 169 Total Bank 978 958 814 938 1,016 1,028 1,012 890 928 2,750 3,056 3,994 3,549

(1) includes Wealth Management.(2) represents smaller operating segments including Group Treasury and corporate adjustments.

FULL YEAR

CONSOLIDATED STATEMENT OF INCOME AND NET INCOME AVAILABLE TO COMMON SHAREHOLDERS BY BUSINESS SEGMENT

QUARTERLY TREND YEAR-TO-DATE200620072008

Page 3

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Net Interest Income (TEB) 1,122 1,051 991 954 1,006 942 953 957 932 3,164 2,901 3,855 3,682 Other Income 564 537 519 663 537 530 518 498 480 1,620 1,585 2,248 1,935 Total Revenue (TEB) 1,686 1,588 1,510 1,617 1,543 1,472 1,471 1,455 1,412 4,784 4,486 6,103 5,617 Provision for Credit Losses (99) (102) (91) (78) (77) (66) (74) (58) (69) (292) (217) (295) (279) Non-interest Expenses (914) (890) (889) (927) (892) (870) (870) (912) (879) (2,693) (2,632) (3,559) (3,469) Provision for Income Taxes (TEB) (210) (174) (157) (173) (179) (169) (164) (147) (143) (541) (512) (685) (581) Net Income 463 422 373 439 395 367 363 338 321 1,258 1,125 1,564 1,288 Preferred Dividends Paid (8) (6) (6) (5) (4) (3) (2) (3) (2) (20) (9) (14) (9) Net Income available to Common Shareholders 455 416 367 434 391 364 361 335 319 1,238 1,116 1,550 1,279 Amortization of Intangibles (net of taxes) 6 5 6 6 6 5 6 7 4 17 17 23 21 Cash Net Income available to Common Shareholders 461 421 373 440 397 369 367 342 323 1,255 1,133 1,573 1,300

ROE (%) 38.5 35.3 30.6 37.0 31.8 32.0 31.1 27.3 26.3 34.8 31.6 33.0 27.8 Net Interest Margin - as % of Average Total Assets 2.52 2.49 2.35 2.33 2.56 2.58 2.58 2.62 2.67 2.45 2.57 2.51 2.70 - as % of Average Earning Assets 2.57 2.54 2.40 2.37 2.62 2.63 2.63 2.67 2.72 2.50 2.63 2.56 2.75 Specific Provisions as % of Average Loans & Acceptances 0.22 0.24 0.22 0.19 0.20 0.18 0.20 0.16 0.20 0.23 0.19 0.19 0.20 Productivity Ratio (%) 54.2 56.0 58.9 57.3 57.8 59.1 59.1 62.7 62.3 56.3 58.7 58.3 61.8

Average Balances ($B):Total Assets 177 172 168 163 156 149 146 145 139 172 151 154 136 Residential Mortgages 112 109 106 104 98 94 91 90 85 109 94 97 83 Personal Loans 38 37 36 35 34 33 33 33 32 37 34 34 32 Business Loans & Acceptances 26 25 25 24 24 22 22 22 22 25 23 23 21 Personal Deposits 85 83 82 77 76 75 74 73 72 83 75 76 71 Non-personal Deposits 43 43 42 41 41 39 40 39 36 43 40 40 36

Other:Branches 1,010 1,010 1,006 1,005 988 981 977 972 967Wealth Management Offices 100 98 98 99 98 98 99 100 99Employees 21,269 21,401 21,505 21,827 21,637 21,253 20,865 20,810 20,728ABMs 2,896 2,896 2,869 2,852 2,808 2,781 2,761 2,742 2,703

BUSINESS SEGMENT PERFORMANCE -- DOMESTIC BANKING



Page 4

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Net Interest Income (TEB) 847 797 731 710 703 679 670 628 607 2,375 2,052 2,762 2,306 Other Income 389 356 309 380 250 300 297 267 237 1,054 847 1,227 939 Total Revenue (TEB) 1,236 1,153 1,040 1,090 953 979 967 895 844 3,429 2,899 3,989 3,245 Provision for Credit Losses (56) (60) (30) (27) (25) (30) (19) (8) (24) (146) (74) (101) (60) Non-interest Expenses (698) (615) (568) (582) (558) (577) (562) (555) (477) (1,881) (1,697) (2,279) (1,927) Provision for Income Taxes (TEB) (118) (107) (122) (89) (65) (44) (43) (34) (29) (347) (152) (241) (98) Non-controlling Interest in Net Income of Subsidiaries (29) (36) (31) (33) (29) (31) (25) (28) (27) (96) (85) (118) (98) Net Income 335 335 289 359 276 297 318 270 287 959 891 1,250 1,062 Preferred Dividends Paid (14) (9) (7) (6) (6) (4) (2) (2) (2) (30) (12) (18) (8) Net Income available to Common Shareholders 321 326 282 353 270 293 316 268 285 929 879 1,232 1,054 Amortization of Intangibles (net of taxes) 2 2 1 1 1 2 1 1 1 5 4 5 2 Cash Net Income available to Common Shareholders 323 328 283 354 271 295 317 269 286 934 883 1,237 1,056

ROE (%) 15.8 17.6 19.6 21.3 16.1 18.7 22.2 21.1 23.9 17.5 18.8 19.5 23.4 Net Interest Margin - as % of Average Total Assets 4.14 4.10 4.18 4.32 4.27 4.03 4.09 4.20 4.19 4.14 4.13 4.18 4.15 - as % of Average Earning Assets 4.15 4.11 4.19 4.33 4.28 4.03 4.10 4.21 4.20 4.15 4.14 4.19 4.17Specific Provisions as % of Average Loans & Acceptances 0.40 0.47 0.27 0.26 0.25 0.29 0.19 0.09 0.28 0.38 0.24 0.25 0.18Productivity Ratio (%) 56.5 53.3 54.6 53.4 58.6 58.9 58.1 62.0 56.5 54.9 58.5 57.1 59.4

Average Balances ($B):Total Assets 81 79 70 65 65 69 65 59 57 77 66 66 56Residential Mortgages 12 9 9 8 8 8 8 7 7 10 8 8 7 Personal Loans 8 8 7 7 7 7 6 6 5 8 7 7 5 Business Loans & Acceptances 36 35 29 26 25 28 26 23 22 33 26 26 21 Securities 16 16 15 15 15 16 14 13 13 16 15 15 13 Total Deposits (1) 47 48 40 48 49 50 48 44 43 45 49 49 41

Other:Branches and Offices 1,396 1,372 1,305 1,178 1,154 1,114 1,100 1,070 1,030Employees 30,702 30,599 30,324 26,829 26,087 25,545 24,919 24,447 23,311ABMs 2,635 2,580 2,526 2,431 2,319 2,287 2,257 2,195 2,130

(1) Effective Q1/08, certain deposits, which were previously reported in the International segment, are now reported in the Other segment (Q1/08 impact: $12 billion).

BUSINESS SEGMENT PERFORMANCE -- INTERNATIONAL BANKING



Page 5

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Net Interest Income (TEB) 269 246 274 364 231 296 269 251 262 789 796 1,160 951 Other Income 383 292 131 156 413 360 361 324 351 806 1,134 1,290 1,437 Total Revenue (TEB) 652 538 405 520 644 656 630 575 613 1,595 1,930 2,450 2,388 Provision for Credit Losses (4) 9 10 10 10 51 30 (26) 19 15 91 101 63 Non-interest Expenses (254) (243) (191) (225) (267) (262) (259) (216) (232) (688) (788) (1,013) (955) Provision for Income Taxes (TEB) (97) (49) (33) (76) (107) (125) (105) (97) (120) (179) (337) (413) (443) Net Income 297 255 191 229 280 320 296 236 280 743 896 1,125 1,053 Preferred Dividends Paid (6) (4) (4) (3) (4) (2) (2) (1) (2) (14) (8) (11) (6) Net Income available to Common Shareholders 291 251 187 226 276 318 294 235 278 729 888 1,114 1,047 Amortization of Intangibles (net of taxes) 1 1 - 1 - - 1 - 1 2 1 2 2 Cash Net Income available to Common Shareholders 292 252 187 227 276 318 295 235 279 731 889 1,116 1,049

ROE (%) 34.1 29.6 22.6 24.2 27.7 33.4 30.7 26.2 31.9 28.8 30.5 29.0 31.3 Net Interest Margin - as % of Average Total Assets 0.66 0.60 0.69 0.96 0.59 0.79 0.71 0.71 0.76 0.65 0.70 0.76 0.73 - as % of Average Earning Assets 0.82 0.76 0.86 1.16 0.69 0.92 0.82 0.82 0.92 0.81 0.81 0.89 0.87Specific Provisions as a % of Average Loans & Acceptances (1) 0.04 (0.10) (0.12) (0.13) (0.13) (0.70) (0.39) 0.36 (0.29) (0.06) (0.40) (0.33) (0.25)Productivity Ratio (%) 39.0 45.2 47.2 43.3 41.5 39.9 41.1 37.6 37.8 43.1 40.8 41.3 40.0

Average Balances ($B):Total Assets 162 167 157 150 156 153 150 140 136 162 153 152 130 Business Loans & Acceptances 57 54 48 41 43 41 41 36 32 53 42 42 32 Securities Purchased Under Resale Agreements 15 18 16 23 23 20 22 22 19 16 22 22 20 Securities -- Trading 56 58 58 57 63 61 58 53 52 57 61 60 50 -- Other 7 7 7 6 6 14 14 14 14 7 11 10 11 Deposits with Banks 6 6 8 7 6 5 4 3 3 7 5 6 3 Total Deposits 31 29 33 29 24 28 25 26 22 31 25 26 22

Employees 1,506 1,473 1,479 1,468 1,471 1,395 1,418 1,382 1,410

(1) Corporate Banking only

BUSINESS SEGMENT PERFORMANCE -- SCOTIA CAPITAL

FULL YEAR2006

YEAR-TO-DATEQUARTERLY TREND20072008

Page 6

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Net Interest Income (2) (292) (221) (182) (312) (128) (123) (116) (184) (85) (695) (367) (679) (531) Other Income 92 114 66 163 189 118 157 127 105 272 464 627 489 Total Revenue (200) (107) (116) (149) 61 (5) 41 (57) 20 (423) 97 (52) (42) Provision for Credit Losses - - - - - 25 - 60 - - 25 25 60 Non-interest Expenses (23) (46) (21) (58) (35) (17) (33) (25) (20) (90) (85) (143) (92) Provision for Income Taxes (2) 138 121 119 134 55 52 35 75 48 378 142 276 250 Net Income (85) (32) (18) (73) 81 55 43 53 48 (135) 179 106 176 Preferred Dividends Paid (4) (3) (4) (2) (2) (2) (2) (1) (2) (11) (6) (8) (7) Net Income available to Common Shareholders (89) (35) (22) (75) 79 53 41 52 46 (146) 173 98 169 Amortization of Intangibles (net of taxes) - - - - - - - - - - - - - Cash Net Income available to Common Shareholders (89) (35) (22) (75) 79 53 41 52 46 (146) 173 98 169

Average Balances ($B):Total Assets 37 37 34 31 32 33 30 30 32 36 32 31 29 Deposits with Banks 14 15 14 14 14 13 11 13 12 14 13 13 12 Securities 16 16 16 13 13 13 13 12 13 16 13 13 12 Total Deposits (3) 121 116 107 95 97 89 85 80 77 115 90 91 73

(1) represents smaller operating segments including Group Treasury and corporate adjustments.

(3) Effective Q1/08, certain deposits, which were previously reported in the International segment, are now reported in the Other segment (Q1/08 impact: $12 billion).

BUSINESS SEGMENT PERFORMANCE -- OTHER (1)

(2) includes elimination of the tax-exempt income gross-up reported in net interest income and provision for income taxes in the three business segments reported on pages 4 to 6.

YEAR-TO-DATE2006

QUARTERLY TREND2007

FULL YEAR2008

Page 7

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006NET INTEREST MARGIN:Net Interest Income (TEB) ($MM) 2,049 1,973 1,932 1,932 1,913 1,903 1,881 1,783 1,816 5,954 5,697 7,629 6,848

Net Interest Income (TEB) as % of Average Total Assets 1.79 1.76 1.79 1.87 1.86 1.93 1.91 1.89 1.98 1.78 1.90 1.89 1.95

Net Interest Income (TEB) as % of Average Earning Assets 2.03 2.03 2.04 2.11 2.07 2.14 2.11 2.10 2.23 2.03 2.11 2.11 2.18

TRADING REVENUE (TEB) ($MM):Securities Trading (1) 19 20 (11) (1) (2) 24 44 25 6 28 66 65 145 Foreign Exchange and Precious Metals Trading 77 92 91 91 85 81 66 70 67 260 232 323 301 Derivative and Other Trading (1) 151 106 (1) 64 229 151 137 159 114 256 517 581 585 Total 247 218 79 154 312 256 247 254 187 544 815 969 1,031

Reported in Other Income 150 123 (44) (67) 217 151 149 138 99 229 517 450 637 Reported in Net Interest Income 97 95 123 221 95 105 98 116 88 315 298 519 394 Total 247 218 79 154 312 256 247 254 187 544 815 969 1,031

DEFERRED REVENUES ($MM): 327 339 403 333 290 286 259 243 243

ASSETS UNDER ADMINISTRATION ($B):Personal Retail Brokerage 75.5 75.2 76.8 77.4 77.9 76.3 74.0 69.7 67.5 Investment Management and Trust 57.9 56.8 53.5 53.1 56.5 62.8 62.7 59.5 56.0 133.4 132.0 130.3 130.5 134.4 139.1 136.7 129.2 123.5 Mutual Funds 29.7 26.0 25.1 24.8 24.5 23.6 21.4 19.8 18.6 Institutional 44.3 44.3 39.8 39.8 39.9 45.7 45.0 42.9 38.8 Total 207.4 202.3 195.2 195.1 198.8 208.4 203.1 191.9 180.9

ASSETS UNDER MANAGEMENT ($B):Personal 12.6 11.3 11.2 11.2 11.1 10.9 11.1 10.0 9.8 Mutual Funds 20.6 17.1 16.0 15.9 15.9 15.4 13.5 13.2 12.6 Institutional 4.6 4.5 4.5 4.3 4.0 4.1 4.6 4.6 4.2 Total 37.8 32.9 31.7 31.4 31.0 30.4 29.2 27.8 26.6

(1) prior period numbers restated to conform with current presentation.


NET INTEREST MARGIN, TRADING REVENUE AND ASSETS UNDER ADMINISTRATION & MANAGEMENT


Page 8

OTHER INCOME

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Card Revenues 102 93 95 92 92 89 93 83 78 290 274 366 307

Deposit and Payment Services Deposit Services 176 165 162 161 167 159 165 160 159 503 491 652 622 Other Payment Services 49 43 45 43 41 40 41 36 39 137 122 165 144

225 208 207 204 208 199 206 196 198 640 613 817 766

Mutual Funds 83 78 78 78 77 73 68 63 60 239 218 296 241

Investment Management, Brokerage and Trust Services Retail Brokerage 140 131 134 135 139 141 138 121 115 405 418 553 481 Personal and Corporate Trust 32 33 29 28 31 31 30 31 27 94 92 120 115 Investment Management and Custody 24 25 23 22 22 23 20 19 17 72 65 87 70

196 189 186 185 192 195 188 171 159 571 575 760 666

Credit Fees Commitment and Other Credit Fees 125 106 99 93 111 98 101 97 110 330 310 403 414 Acceptance Fees 39 34 34 33 32 31 31 30 30 107 94 127 116

164 140 133 126 143 129 132 127 140 437 404 530 530

Trading Revenues 150 123 (44) (67) 217 151 149 138 99 229 517 450 637

Investment Banking Underwriting Fees and Other Commissions 116 90 95 100 126 137 135 122 113 301 398 498 453 Foreign Exchange and Other 77 80 69 64 58 58 59 53 54 226 175 239 206

193 170 164 164 184 195 194 175 167 527 573 737 659

Net Gain on Securities, other than Trading 90 59 20 148 134 79 127 64 105 169 340 488 371

Other 225 239 186 432 142 198 176 199 167 650 516 948 623

Total Other Income 1,428 1,299 1,025 1,362 1,389 1,308 1,333 1,216 1,173 3,752 4,030 5,392 4,800

% of Total Revenue (TEB) 41.1 39.7 34.7 41.3 42.1 40.7 41.5 40.5 39.2 38.7 41.4 41.4 41.2

FULL YEAR2006


Page 9

NON-INTEREST EXPENSES

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Salaries and Employee Benefits Salaries 646 610 608 595 584 571 565 558 539 1,864 1,720 2,315 2,100 Stock-based Compensation 27 16 36 27 20 29 57 50 23 79 106 133 164 Other Performance-based Compensation 253 237 202 236 278 259 244 217 241 692 781 1,017 936 Pension and Other Employee Benefits 142 142 132 105 131 145 137 141 137 416 413 518 568

1,068 1,005 978 963 1,013 1,004 1,003 966 940 3,051 3,020 3,983 3,768

Premises and Technology Net Premises Rent 55 55 50 50 50 49 48 46 46 160 147 197 181 Premises Repairs and Maintenance 22 20 17 22 17 17 19 17 16 59 53 75 60 Property Taxes 19 18 13 16 18 16 15 17 17 50 49 65 61 Computer Equipment, Software and Data Processing 161 158 149 170 148 144 141 152 139 468 433 603 549 Depreciation 58 58 56 56 56 53 56 50 49 172 165 221 192 Other Premises Costs 53 50 42 48 46 50 48 40 46 145 144 192 171

368 359 327 362 335 329 327 322 313 1,054 991 1,353 1,214

Communications Telecommunications 20 19 18 19 19 17 18 19 17 57 54 73 68 Stationery, Postage and Courier 62 61 57 57 57 58 55 56 53 180 170 227 208

82 80 75 76 76 75 73 75 70 237 224 300 276

Advertising and Business Development Advertising and Promotion 50 51 41 60 42 42 49 41 33 142 133 193 126 Travel and Business Development 27 27 28 34 29 28 27 32 26 82 84 118 106

77 78 69 94 71 70 76 73 59 224 217 311 232

Professional 55 68 45 81 53 48 45 58 46 168 146 227 174

Business and Capital Taxes 40 38 14 33 37 34 39 36 37 92 110 143 133

Other Employee Training 8 10 11 18 13 10 12 16 13 29 35 53 47 Amortization of Intangibles 13 12 11 12 11 11 12 12 10 36 34 46 38 Other 178 144 139 153 143 145 137 150 120 461 425 578 561

199 166 161 183 167 166 161 178 143 526 494 677 646

Total Non-Interest Expenses 1,889 1,794 1,669 1,792 1,752 1,726 1,724 1,708 1,608 5,352 5,202 6,994 6,443

Productivity Ratio (TEB) (%) 54.3 54.8 56.5 54.4 53.0 53.8 53.6 56.9 53.8 55.1 53.5 53.7 55.3

FULL YEAR2006


Page 10

BALANCE SHEET

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3

Cash Resources 32,896 32,487 36,411 29,195 28,776 31,122 26,384 23,376 24,181

Securities - Trading 56,016 62,138 60,702 59,685 63,797 71,547 64,307 62,490 57,600 - Available for Sale 34,314 34,322 32,992 28,426 28,636 28,474 36,037 - - - Investment - - - - - - - 32,870 33,593 - Equity Accounted Investments 853 802 788 724 424 153 171 142 132

91,183 97,262 94,482 88,835 92,857 100,174 100,515 95,502 91,325

Securities Purchased under Resale Agreements 17,774 15,323 20,362 22,542 26,834 25,867 24,129 25,705 22,535

Loans - Residential Mortgages 113,830 108,382 105,532 102,154 99,000 94,706 92,055 89,590 85,541 - Personal and Credit Cards 48,971 45,273 43,513 41,734 41,360 40,408 39,757 39,058 38,245 - Business and Government 111,921 104,928 101,389 85,500 84,778 83,424 83,067 76,733 72,568 - Sub-total 274,722 258,583 250,434 229,388 225,138 218,538 214,879 205,381 196,354 Allowance for Credit Losses (2,477) (2,490) (2,451) (2,241) (2,423) (2,505) (2,620) (2,607) (2,695) - Total Net Loans 272,245 256,093 247,983 227,147 222,715 216,033 212,259 202,774 193,659

Customers' Liability under Acceptances 11,497 11,782 12,518 11,538 10,289 10,277 10,431 9,555 9,200 Derivative Instruments 23,504 25,638 25,217 21,960 16,635 16,186 12,529 12,098 13,771 Land, Buildings and Equipment 2,542 2,506 2,460 2,271 2,296 2,308 2,344 2,256 2,209 Goodwill 2,134 2,162 1,266 1,134 1,140 1,176 1,121 873 688 Other Intangible Assets 287 263 273 273 287 301 317 294 267 Other Assets 8,345 9,057 8,450 6,615 6,286 8,266 6,441 6,573 7,146

Total Assets 462,407 452,573 449,422 411,510 408,115 411,710 396,470 379,006 364,981

Deposits - Personal 112,872 109,994 108,219 100,823 98,171 97,218 96,823 93,450 91,904 - Banks 28,358 35,566 32,806 26,406 32,146 36,466 31,201 29,392 28,072 - Business and Government 191,239 176,878 175,772 161,229 156,668 157,919 148,995 141,072 135,249 - Total 332,469 322,438 316,797 288,458 286,985 291,603 277,019 263,914 255,225 Other Liabilities - Securities Sold Under Repurchase Agreements 29,116 27,446 32,967 28,137 31,223 29,577 29,612 33,470 29,117 - Securities Sold Short 11,765 15,028 13,570 16,039 21,322 21,521 18,201 13,396 14,663 - Derivative Instruments 22,981 24,010 25,046 24,689 15,352 14,167 12,106 12,869 13,715 - Other 40,677 38,782 38,399 33,173 31,042 31,796 36,647 34,789 32,168 - Total 104,539 105,266 109,982 102,038 98,939 97,061 96,566 94,524 89,663

Subordinated Debentures 3,538 3,946 2,150 1,710 1,774 2,301 2,340 2,271 2,275

Capital Instrument Liabilities 500 500 500 500 750 750 750 750 750

Equity - Preferred Shares 2,560 2,210 1,865 1,635 1,290 1,290 945 600 600

- Common Shares and Contributed Surplus 3,728 3,643 3,614 3,566 3,521 3,539 3,520 3,425 3,393 - Retained Earnings 18,784 18,300 17,809 17,460 16,967 16,763 16,376 15,843 15,372 - Accumulated Other Comprehensive Income (Loss) (3,711) (3,730) (3,295) (3,857) (2,111) (1,597) (1,046) (2,321) (2,297) - Common Equity 18,801 18,213 18,128 17,169 18,377 18,705 18,850 16,947 16,468

- Total Equity 21,361 20,423 19,993 18,804 19,667 19,995 19,795 17,547 17,068

Total Liabilities and Shareholders' Equity 462,407 452,573 449,422 411,510 408,115 411,710 396,470 379,006 364,981

2006QUARTERLY TREND

20072008

Page 11

AVERAGE BALANCE SHEET

($MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Deposits with Other Banks 27,783 28,165 28,815 26,944 26,785 25,461 22,407 23,163 21,339 28,255 24,878 25,399 20,989

Securities - Trading 60,601 63,352 63,644 62,854 69,775 67,227 64,059 58,489 59,433 62,526 67,018 65,968 57,022 - Other 34,967 34,402 32,969 28,741 27,595 36,650 35,153 33,649 33,368 34,111 33,094 31,997 30,643

95,568 97,754 96,613 91,595 97,370 103,877 99,212 92,138 92,801 96,637 100,112 97,965 87,665

Securities Purchased under Resale Agreements 18,461 21,730 19,471 26,461 26,877 23,426 26,461 25,820 23,070 19,874 25,612 25,826 23,614

Loans - Residential Mortgages 111,342 105,874 103,599 100,777 96,477 93,163 90,982 89,091 83,437 106,946 93,544 95,367 81,845 - Personal and Credit Cards 45,463 43,960 42,159 41,051 40,255 39,564 38,680 38,205 37,324 43,860 39,499 39,890 36,599 - Business and Government 103,198 98,701 86,995 76,838 78,765 78,413 75,298 69,052 64,664 96,281 77,483 77,320 62,823 - Total 260,003 248,535 232,753 218,666 215,497 211,140 204,960 196,348 185,425 247,087 210,526 212,577 181,267

Total Earning Assets 401,815 396,184 377,652 363,666 366,529 363,904 353,040 337,469 322,635 391,853 361,128 361,767 313,535

Customers' Liability under Acceptances 12,442 12,715 11,884 11,316 10,881 10,653 10,419 9,574 9,339 12,344 10,651 10,819 9,011 Other Assets 42,419 46,511 39,001 33,819 31,736 29,787 28,080 27,551 31,804 42,402 29,730 30,889 28,163

Total Assets 456,676 455,410 428,537 408,801 409,146 404,344 391,539 374,594 363,778 446,599 401,509 403,475 350,709

Deposits - Personal 111,948 108,072 102,729 97,544 96,542 96,246 94,233 92,184 89,825 107,579 95,668 96,140 88,445 - Banks 29,767 33,200 29,970 28,450 35,480 32,306 30,817 29,377 29,868 30,963 32,874 31,759 28,481 - Business and Government 185,561 177,637 170,561 164,171 155,615 152,475 146,891 141,347 130,553 177,922 151,651 154,808 126,818 - Total 327,276 318,909 303,260 290,165 287,637 281,027 271,941 262,908 250,246 316,464 280,193 282,707 243,744

Other Liabilities 104,092 112,919 103,753 96,999 98,737 100,423 97,722 91,358 93,786 106,696 98,939 98,665 87,210

Subordinated Debentures 3,894 2,906 1,738 1,749 2,191 2,326 2,286 2,270 2,268 2,845 2,267 2,137 2,359

Capital Instrument Liabilities 500 500 500 750 750 750 750 750 750 500 750 750 750

Shareholders' Equity - Preferred Shares 2,408 2,006 1,638 1,365 1,290 1,040 630 600 600 2,017 985 1,082 600 - Common Shares, Contributed Surplus, Retained Earnings and Accumulated Other Comprehensive Income (Loss) 18,506 18,170 17,648 17,773 18,541 18,778 18,210 16,708 16,128 18,077 18,375 18,134 16,046 - Total 20,914 20,176 19,286 19,138 19,831 19,818 18,840 17,308 16,728 20,094 19,360 19,216 16,646

Total Liabilities and Shareholders' Equity 456,676 455,410 428,537 408,801 409,146 404,344 391,539 374,594 363,778 446,599 401,509 403,475 350,709

FULL YEAR2006


Page 12

($MM)Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006

Preferred Shares:Balance at Beginning of Period 2,210 1,865 1,635 1,290 1,290 945 600 600 600 1,635 600 600 600 Preferred Shares Issued 350 345 230 345 - 345 345 - - 925 690 1,035 - Balance at End of Period 2,560 2,210 1,865 1,635 1,290 1,290 945 600 600 2,560 1,290 1,635 600

Common Shares and Contributed Surplus: Balance at Beginning of Period 3,643 3,614 3,566 3,521 3,539 3,520 3,425 3,393 3,363 3,566 3,425 3,425 3,317 Common Shares Issued less Purchased for Cancellation 85 29 48 45 (18) 19 95 32 30 162 96 141 108 Balance at End of Period 3,728 3,643 3,614 3,566 3,521 3,539 3,520 3,425 3,393 3,728 3,521 3,566 3,425

Retained Earnings:Balance at Beginning of Period 18,300 17,809 17,460 16,967 16,763 16,376 15,843 15,372 14,884 17,460 15,843 15,843 14,126 Cumulative Effect of Adopting New Accounting Policies - - - - - - (61) - - - (61) (61) (25) Adjusted Balance at Beginning of Period 18,300 17,809 17,460 16,967 16,763 16,376 15,782 15,372 14,884 17,460 15,782 15,782 14,101 Net Income 1,010 980 835 954 1,032 1,039 1,020 897 936 2,825 3,091 4,045 3,579 Dividends - Preferred (32) (22) (21) (16) (16) (11) (8) (7) (8) (75) (35) (51) (30) - Common (485) (463) (463) (442) (445) (417) (416) (386) (385) (1,411) (1,278) (1,720) (1,483) Premium on Purchase of Shares for Cancellation (6) - - - (368) (218) - (33) (55) (6) (586) (586) (324) Other (3) (4) (2) (3) 1 (6) (2) - - (9) (7) (10) - Balance at End of Period 18,784 18,300 17,809 17,460 16,967 16,763 16,376 15,843 15,372 18,784 16,967 17,460 15,843

Accumulated Other Comprehensive Income (Loss) (1):Balance at Beginning of Period (3,730) (3,295) (3,857) (2,111) (1,597) (1,046) (2,321) (2,297) (2,458) (3,857) (2,321) (2,321) (1,961) Cumulative Effect of Adopting New Accounting Policies - - - - - - 683 - - - 683 683 - Other Comprehensive Income- Net Change in Unrealized Foreign Currency Translation Gains/Losses 193 (85) 885 (1,697) (465) (588) 522 (24) 161 993 (531) (2,228) (360) Net Change in Unrealized Gains/Losses on available-for-sale Securities (243) (210) (60) 14 (146) 17 48 - - (513) (81) (67) - Net Change in Gains/Losses on Derivative Instruments, designated as cash flow hedges 69 (140) (263) (63) 97 20 22 - - (334) 139 76 - Total 19 (435) 562 (1,746) (514) (551) 592 (24) 161 146 (473) (2,219) (360)

Balance at End of Period (3,711) (3,730) (3,295) (3,857) (2,111) (1,597) (1,046) (2,321) (2,297) (3,711) (2,111) (3,857) (2,321)

Total Shareholders' Equity at End of Period 21,361 20,423 19,993 18,804 19,667 19,995 19,795 17,547 17,068 21,361 19,667 18,804 17,547

Composition of Accumulated Other Comprehensive Income (Loss):Unrealized Foreign Currency Translation Losses (3,556) (3,749) (3,664) (4,549) (2,852) (2,387) (1,799) (2,321) (2,297) Unrealized Gains on available-for-sale Securities 126 369 579 639 625 771 754 - - Gains on Derivative Instruments, designated as cash flow hedges (281) (350) (210) 53 116 19 (1) - - Total (3,711) (3,730) (3,295) (3,857) (2,111) (1,597) (1,046) (2,321) (2,297)

(1) Accumulated Other Comprehensive Income balances prior to Q1/07 were previously reported as Cumulative Foreign Currency Translation Losses.

FULL YEAR

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

2006QUARTERLY TREND

2007YEAR-TO-DATE

2008

Page 13

GROSS IMPAIRED LOANS

($MM)Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3

GROSS IMPAIRED LOANS:Domestic Retail 472 444 422 391 362 366 362 374 346 Commercial 228 244 207 197 207 228 264 263 254

700 688 629 588 569 594 626 637 600

International Retail 688 664 559 426 488 486 460 411 390 Commercial 674 604 566 471 576 602 592 569 604

1,362 1,268 1,125 897 1,064 1,088 1,052 980 994

Scotia Capital Canada - 24 48 18 18 18 18 18 18 U.S.A. 86 8 16 11 18 20 107 119 138 Europe 15 24 24 30 40 66 73 116 94

101 56 88 59 76 104 198 253 250

Total Gross Impaired Loans 2,163 2,012 1,842 1,544 1,709 1,786 1,876 1,870 1,844

Specific Allowance for Credit Losses (1,154) (1,167) (1,153) (943) (1,125) (1,207) (1,297) (1,300) (1,365) Total Net Impaired Loans after Specific Allowance 1,009 845 689 601 584 579 579 570 479

General Allowance for Credit Losses (1,323) (1,323) (1,298) (1,298) (1,298) (1,298) (1,323) (1,307) (1,330) Total Net Impaired Loans after General Allowance (314) (478) (609) (697) (714) (719) (744) (737) (851)

2006QUARTERLY TREND

20072008

Page 14

CHANGES IN GROSS IMPAIRED LOANS

($MM)Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3

Balance at Beginning of Period 2,012 1,842 1,544 1,709 1,786 1,876 1,870 1,844 1,955

Acquisition of Subsidiaries Domestic Retail - - - - - 1 - - - Domestic Commercial - - - - - - - - - International - 75 228 - - 6 26 16 - Scotia Capital - - - - - - - - - Total - 75 228 - - 7 26 16 -

Net ClassificationsDomestic Retail New Classifications 234 242 224 234 193 199 193 170 183 Declassifications, Payments and Sales (119) (128) (108) (127) (116) (121) (112) (93) (107) Net Classifications 115 114 116 107 77 78 81 77 76

Domestic Commercial New Classifications 47 50 33 30 9 10 40 63 27 Declassifications, Payments and Sales (32) (10) (13) (22) (8) (30) (34) (34) (7) Net Classifications 15 40 20 8 1 (20) 6 29 20

International New Classifications 265 178 126 77 117 148 86 77 66 Declassifications, Payments and Sales (68) (43) (79) (23) (24) (20) (21) (50) (45) Net Classifications 197 135 47 54 93 128 65 27 21

Scotia Capital New Classifications 83 - 61 1 1 - - 63 - Declassifications, Payments and Sales (33) (26) (28) (12) (25) (121) (75) (27) (98) Net Classifications 50 (26) 33 (11) (24) (121) (75) 36 (98)

Total 377 263 216 158 147 65 77 169 19

Write-offs Domestic Retail (87) (92) (85) (78) (81) (75) (93) (49) (69) Domestic Commerical (31) (3) (10) (18) (22) (16) (5) (20) (4) International (94) (88) (92) (119) (75) (44) (61) (49) (61) Scotia Capital (6) (7) (7) - (1) (1) (9) (32) (8) Total (218) (190) (194) (215) (179) (136) (168) (150) (142)

Forex Domestic Retail - - - - - - - - - Domestic Commerical - - - - - - - - - International (9) 21 45 (102) (42) (54) 42 (8) 5 Scotia Capital 1 1 3 (6) (3) 28 29 (1) 7 Total (8) 22 48 (108) (45) (26) 71 (9) 12

Balance at End of Period 2,163 2,012 1,842 1,544 1,709 1,786 1,876 1,870 1,844

2006QUARTERLY TREND

20072008

Page 15

NET IMPAIRED LOANS AND ALLOWANCE FOR CREDIT LOSSES

($MM)Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3

NET IMPAIRED LOANS:Domestic Retail 198 171 148 139 120 125 131 130 123 Commercial 110 120 96 90 88 90 114 115 88

308 291 244 229 208 215 245 245 211

International Retail 249 234 173 115 137 113 94 61 55 Commercial 377 291 219 245 220 216 145 146 103

626 525 392 360 357 329 239 207 158

Scotia Capital Canada - 18 36 2 2 2 2 2 1 U.S.A. 72 4 10 4 3 3 58 45 83 Europe 3 7 7 6 14 30 35 71 26

75 29 53 12 19 35 95 118 110

Total Net Impaired Loans after Specific Allowance 1,009 845 689 601 584 579 579 570 479

General Allowance for Credit Losses (1,323) (1,323) (1,298) (1,298) (1,298) (1,298) (1,323) (1,307) (1,330)

Total Net Impaired Loans after General Allowance (314) (478) (609) (697) (714) (719) (744) (737) (851)

Coverage Ratio (%) (1) 114.5 123.8 134.9 145.1 141.8 140.3 139.7 139.4 146.1

ALLOWANCE FOR CREDIT LOSSES:Balance, Beginning of Period 2,498 2,462 2,252 2,433 2,516 2,631 2,618 2,706 2,717 Acquisition of Subsidiairies (6) (3) 177 1 10 17 26 18 - Write-offs (218) (190) (194) (215) (179) (136) (168) (150) (142) Recoveries 52 51 51 50 38 64 34 36 50 Provision for Credit Losses 159 153 111 95 92 20 63 32 74 Foreign Currency Adjustment and Other - 25 65 (112) (44) (80) 58 (24) 7 Balance, End of Period 2,485 2,498 2,462 2,252 2,433 2,516 2,631 2,618 2,706

Comprised of:Specific Allowance 1,154 1,167 1,153 943 1,125 1,207 1,297 1,300 1,365 General Allowance 1,323 1,323 1,298 1,298 1,298 1,298 1,323 1,307 1,330 Other Liabilities 8 8 11 11 10 11 11 11 11 Total Allowance for Credit Losses 2,485 2,498 2,462 2,252 2,433 2,516 2,631 2,618 2,706

(1) Specific and General Allowances for Credit Losses as a percentage of Total Gross Impaired Loans.

2006QUARTERLY TREND

20072008

Page 16

CROSS BORDER EXPOSURES TO SELECT COUNTRIES IN ASIA AND LATIN AMERICA

Outstandings (net of provisions), US$ millions

Interbank Govt./ Invest. in Jul 31/08 Apr 30/08 Jul 31/07Loans Trade Deposits Other Sec. Affiliates Other (1) Total Total Total

ASIA

South Korea 1,299 500 - 422 - 125 2,346 2,080 1,504 Japan 660 76 13 67 - 71 887 946 920 India 1,477 857 31 273 - 46 2,684 2,493 1,551 Malaysia 603 42 - 382 159 6 1,192 1,036 759 Hong Kong 643 135 - 440 - 5 1,223 1,123 835 China 795 1,192 17 8 - 40 2,052 1,852 1,225 Thailand 48 8 - 102 214 - 372 570 364 Other (2) 578 136 46 274 - 79 1,113 1,113 738

Total 6,103 2,946 107 1,968 373 372 11,869 11,213 7,896

LATIN AMERICA

Mexico 1,401 39 - 473 2,420 17 4,350 4,129 3,837 Chile 814 27 - 2 1,585 - 2,428 2,542 1,119 Brazil 424 837 - 262 - 6 1,529 1,488 1,191 Peru 221 144 - - 963 - 1,328 1,329 717 El Salvador 355 7 - - 346 - 708 689 529 Costa Rica 823 66 - - 406 - 1,295 1,297 1,014 Venezuela 5 1 - - 93 - 99 95 93 Other (3) 888 92 14 18 - 13 1,025 890 667

Total 4,931 1,213 14 755 5,813 36 12,762 12,459 9,167

(1) includes forex contracts, precious metals, derivatives (positive mark-to-market).(2) includes Indonesia, The Philippines, Singapore and Taiwan.(3) includes Argentina, Colombia, Panama and Uruguay.

Page 17

ASSET SECURITIZATION, RESERVES AND INTEREST RATE SENSITIVITY

Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3ASSET SECURITIZATION ($MM):

Balance, Beginning of Period 11,909 11,450 12,045 12,103 11,988 11,955 12,083 12,736 13,517

Acquisition of subsidiairies - - - - - 335 - - -

Securitizations 900 1,142 555 1,010 1,351 605 861 703 699

Paydowns/Maturities (1,159) (683) (1,150) (1,068) (1,236) (907) (989) (1,356) (1,480)

Balance, End of Period Personal Loans 249 265 285 414 452 505 170 170 170 Mortgages 11,401 11,644 11,165 11,631 11,651 11,483 11,785 11,913 12,566

11,650 11,909 11,450 12,045 12,103 11,988 11,955 12,083 12,736

AVAILABLE-FOR-SALE SECURITIES - UNREALIZED GAINS (LOSSES) ($MM):

Bonds of Emerging Markets 345 493 547 530 527 676 667 658 593 Other Fixed Income (292) (179) 89 (14) (103) (33) (80) (88) (153) Common and Preferred Shares 140 257 259 456 536 565 574 521 457

193 571 895 972 960 1,208 1,161 1,091 897 Net Fair Value of Derivative Instruments and Other Hedge Amounts 14 (16) (40) 5 20 (10) 7 (90) (49) Net Unrealized Gains (Losses) 207 555 855 977 980 1,198 1,168 1,001 848

INTEREST RATE SENSITIVITY ($B): Within 3 3 to 12 Cumulative Over 1 Non-InterestMonths Months Under 1 Year Year Rate Sensitive

July 31, 2008Canadian Currency Gap 25.4 (12.0) 13.4 (5.0) (8.4) Foreign Currency Gap (9.0) 6.1 (2.9) 18.5 (15.6) Total Currency Gap 16.4 (5.9) 10.5 13.5 (24.0)

( ) denotes liability gap

QUARTERLY TREND

Note: Based on the Bank's interest rate positions as at July 31, 2008, an immediate and sustained 100 basis point rise in interest rates, across all currencies and maturities, would increase net income after-tax by approximately $14MM over the next 12 months, and lower common shareholders' equity, in present value terms, by approximately $153MM. Conversely, an immediate and sustained 100 basis point fall in interest rates, across all currencies and maturities, would decrease net income after-tax by approximately $75MM over the next 12 months, and increase common shareholders' equity, in present value terms, by approximately $190MM.

200620072008

Page 18

Introduction Page 20

Regulatory Capital Page 21

Risk Weighted Assets and Capital Ratios Page 22

Risk Weighted Assets for Credit Risk portfolios Page 23-24

Credit Risk Exposures by Geography Page 25

Credit Risk Exposures by Risk Weight - Standardized Approach Page 26

Derivatives - Counterparty Credit Risk Page 27

Glossary Page 28

Basel II Appendix

July 31, 2008

Index

Page 19

Basel II Introduction

Effective November 1, 2007, Canadian banks are subject to revised capital adequacy requirements based on the “International Convergence of Capital Measurement and Capital Standards: A Revised Framework”, commonly known as Basel II. The new Framework is designed to reflect more risk-sensitive capital requirements and to strengthen soundness and stability of banks by promoting adoption of stronger risk management practices.

The Basel II Framework introduces the concept of 3 Pillars:

● Pillar 1 – the actual methodologies that must be applied to calculate the minimum capital requirements.

● Pillar 2 – the requirement that banks have internal processes to assess their capital adequacy in relation to their strategies, risk appetite and actual risk profile. Regulators are expected to review these internal capital adequacy assessments.

● Pillar 3 – reflects the market disclosures required by banks to assist users of the information to better understand the risk profile.

This Appendix reflects a portion of the Pillar 3 market disclosures based on information gathered as part of the Pillar 1 process, and should assist users in understanding the changes to the risk weighted assets and capital requirements arising from the new Framework. The Bank will provide the remaining required disclosures in the fourth quarter of 2008.

Basel II vs. Basel I

Basel II classifies risk into three broad categories: credit risk, market risk and operational risk (new), while Basel I had only two categories: credit risk and market risk. The regulatory capital required under Basel I, for credit risk, was based on pre-specified risk weights applied to categories of claims. This did not provide for a granular differentiation of credit risk capital (e.g.

Generally, while calculating capital requirements, exposure classes such as Corporate, Sovereign, Bank, Retail, Equity are analyzed by the following credit risk exposure sub-types 1: Drawn, Undrawn, Repo-style transactions, Over-the-counter (OTC) Derivatives and Other off-balance sheet claims.

The Bank has received approval from OSFI to use the Advanced Internal Ratings Based Approach (AIRB), subject to certain conditions, for credit risk of its material portfolios booked in Canada, US and Europe. The Bank uses internal estimates, based on historical experience, for probability of default (PD1), loss given default (LGD1) and exposure at default (EAD1).

● Under the AIRB approach, credit risk risk-weighted assets (RWA) are calculated by multiplying the capital requirement (K) by EAD times 12.5, where K is a function of the PD, LGD, Maturity and prescribed correlation factors. This results in the capital calculations being more sensitive to underlying risks.

● To address concerns that the new Basel II rules might cause significant decreases in capital required, banks are currently required to add an overall scaling factor of 6% to the credit risk RWA for AIRB portfolios.

For the remaining material portfolios, the interim treatment is the Standardized approach, until such time they become AIRB compliant (the remaining material portfolios are targeted to be compliant by the beginning of fiscal 2011).

● The Standardized Approach applies regulator prescribed risk weight factors to credit exposures based on the external credit assessments (public ratings), where available, and also considers other additional factors (e.g. provision levels for defaulted exposures, loan-to-value for retail, eligible collateral, etc).

all corporate loans were risk-weighted 100% irrespective of the quality of the loans). Operational Risk

Under Pillar 1 of the new Basel II Framework, minimum capital is calculated using one of the following approaches:

● Credit risk capital – Internal Ratings Based Approach (Advanced or Foundation) or Standardized approach.● Operational risk capital – Advanced Measurement Approach (AMA), Standardized Approach or Basic Indicator Approach.● Market risk capital - more granular treatment for specific risk under Standardized Approach compared to Basel I.

Credit Risk

The credit risk component consists of on- and off- balance sheet claims. The new rules are not applied to the traditional balance sheet categories but introduce new categories of on- and off- balance sheet exposures which represent general classes of assets/exposures (corporate, sovereign, bank, retail, equity) based on their different underlying risk characteristics.

The Bank is using the Standardized Approach for operational risk, where the capital charge is based on a fixed percentage of the average of the previous 3 years’ gross income. The fixed percentages range from 12% - 18% and are based on the type of business, with retail banking activities at the low end of the range and investment banking and capital markets activities at the high end.

Transitional Considerations

The regulator’s transitional arrangements prescribe that for institutions receiving full approval to use the AIRB, a capital floor will be applied for at least two years post approval. The floor is based on a regulatory formula that essentially compares the minimum capital required under Basel I to the minimum capital required under Basel II, and does not allow the latter to fall below the floor based on the former. If a floor is invoked, a prescribed adjustment to risk weighted assets is required to increase the capital to the targeted floor threshold. The Bank's AIRB approval conditions required a 100% floor to be applied for Q1/08. Subsequently, OSFI has given the Bank their approval to move to 90% floor effective Q2/08.

1 refer to glossary

Page 20

($MM)Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1

REGULATORY CAPITAL:Common Shares, Contributed Surplus & Retained Earnings 22,512 21,943 21,423 22,512 21,943 21,423 21,026 20,488 20,302 19,896 OCI - Accumulated Foreign Currency Translation Losses (3,556) (3,749) (3,664) (3,556) (3,749) (3,664) (4,549) (2,852) (2,387) (1,799) Non-Cumulative Preferred Shares 2,560 2,210 1,865 2,560 2,210 1,865 1,635 1,290 1,290 945 Innovative Capital Instruments 2,750 2,750 2,750 2,750 2,750 2,750 2,750 3,000 3,000 3,000 Non-Controlling Interest in Subsidiaries 455 588 548 455 588 548 497 505 496 491 Gross Tier 1 Capital 24,721 23,742 22,922 24,721 23,742 22,922 21,359 22,431 22,701 22,533 Less: Goodwill and Excess Intangibles (2,134) (2,162) (1,266) (2,134) (2,162) (1,266) (1,134) (1,140) (1,176) (1,121) Other Capital Deductions (1) (512) (507) (490) - - - - - - - Net Tier 1 Capital 22,075 21,073 21,166 22,587 21,580 21,656 20,225 21,291 21,525 21,412

OCI - Accumulated Net Unrealized Gains (after-tax) on available-for-sale Equity Securities 122 200 161 122 200 161 298 350 368 374 Debentures (net of amortization) (2) 4,234 4,659 2,859 4,234 4,659 2,859 2,452 1,531 2,043 2,060 Eligible Allowance for Credit Losses (3) 747 783 754 1,323 1,323 1,298 1,298 1,298 1,298 1,323 Tier 2 Capital 5,103 5,642 3,774 5,679 6,182 4,318 4,048 3,179 3,709 3,757

Less: Investment in Insurance Entities and Associated Corporations and other items (1,134) (1,127) (1,066) (1,525) (1,517) (1,442) (1,292) (1,158) (942) (949)

Total Regulatory Capital 26,044 25,588 23,874 26,741 26,245 24,532 22,981 23,312 24,292 24,220

CHANGES IN REGULATORY CAPITAL:Total Capital, Beginning of Period 25,588 23,874 22,321 23,312 24,292 24,220 22,986

Internally Generated Capital Net Income 1,010 980 835 954 1,032 1,039 1,020 Preferred and Common Share Dividends (517) (485) (484) (458) (461) (428) (424)

493 495 351 496 571 611 596

External Financing Debentures (net of amortization) (2) (425) 1,800 407 921 (512) (17) 14 Innovative Capital Instruments - - - (250) - - - Preferred Shares 350 345 230 345 - 345 345 Common Shares Issued less Purchased for Cancellation 85 29 48 45 (18) 19 95 Premium on Purchase of Shares for Cancellation (6) - - - (368) (218) -

4 2,174 685 1,061 (898) 129 454

Other OCI - Net Change in Foreign Currency Translation Gains Losses 193 (85) 885 (1,697) (465) (588) 522 OCI - Net Change in Net Unrealized Gains (after-tax) on available-for-sale Equity Securities (78) 39 (137) (52) (18) (6) 374 Non-controlling Interest in Subsidiaries (133) 40 51 (8) 9 5 56 Other (4) (23) (949) (282) (131) (179) (79) (768)

(41) (955) 517 (1,888) (653) (668) 184

Total Capital Generated (Used) 456 1,714 1,553 (331) (980) 72 1,234

Total Capital, End of Period 26,044 25,588 23,874 22,981 23,312 24,292 24,220

OCI = Other Comprehensive Income(1) Comprised of net after-tax gains on sale of securitized assets, investments in associated corporations and other items(2) Includes Scotia Trust Subordinated Notes - Series A.

effect of adopting new accounting policy on financial institutions.

2008

REGULATORY CAPITAL

(4) Represents changes to eligible general allowance, regulatory capital deductions for goodwill, securitization-related amounts and investments in insurance entities and associated corporations, and other charges (credits) to retained earnings. Q1/07 includes a $61MM charge for cumulative

2007

QUARTERLY TREND

2008Basel I

(3) Under Basel I, the general allowance is included in Tier 2 capital up to a maximum of 0.875% of risk-weighted assets as per OSFI guidelines. Under Basel II, eligible general allowances in excess of expected losses can be included in capital, subject to certain limitations.

Basel II

Page 21

Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1RISK-WEIGHTED ASSETS ($B):On Balance Sheet Assets

Cash Resources 4.6 4.8 5.5 4.3 4.3 4.5 3.7 Securities 13.3 13.5 12.0 10.7 10.0 9.7 13.2 Residential Mortgages 40.1 38.1 36.8 35.0 33.9 32.1 31.4 Loans (1) & Acceptances 139.9 132.2 127.0 113.0 112.4 110.3 109.7 All Other 9.7 9.8 9.3 8.1 7.3 8.8 7.4

207.6 198.4 190.6 171.1 167.9 165.4 165.4

Off Balance Sheet Assets Indirect Credit Instruments 37.5 34.0 33.7 30.9 34.2 32.6 30.4 Interest Rate, Foreign Exchange and Other Derivative Instruments 6.9 8.1 6.9 6.3 6.2 6.7 4.9

Total Credit Risk before AIRB scaling factor (2) 185.9 179.1 177.2 252.0 240.5 231.2 208.3 208.3 204.7 200.7

Total Credit Risk after AIRB scaling factor (3) 192.2 185.3 183.2

Market Risk -- Risk Assets Equivalent 13.5 13.8 12.9 11.1 12.3 11.9 10.0 11.5 8.4 6.1

Operational Risk -- Risk Assets Equivalent (4) 20.1 19.8 19.6

Total Risk Weighted Assets before Transitional Adjustment 225.8 218.9 215.7 263.1 252.8 243.1 218.3 219.8 213.1 206.8Transitional Adjustment 19.2Total Risk Weighted Assets 225.8 218.9 234.9

RISK-WEIGHTED CAPITAL RATIOS (%):

Tier I 9.8 9.6 9.0 8.6 8.5 8.9 9.3 9.7 10.1 10.4 Total 11.5 11.7 10.2 10.2 10.4 10.1 10.5 10.6 11.4 11.7 Tangible Common Equity 7.6 7.5 7.2 6.5 6.5 6.9 7.2 7.7 8.0 8.4

(1) Basel I comparatives include Securities Purchased under Resale Agreements(2) Details by Basel II exposure type shown in the following page -"risk-weighted assets for credit risk portfolios"(3) The Basel II framework imposes an additional 6% scaling factor to AIRB credit risk portfolios. (4) New capital requirements for operational risk under Basel II.

RISK-WEIGHTED ASSETS AND CAPITAL RATIOS

2007

QUARTERLY TREND

20082008Basel IBasel II

Page 22

($MM)

Basel II Exposure Sub-type

Exposure at Default

Risk Weighted Assets

Exposure at Default1


Exposure at Default



Credit Risk - non tradingDrawn 59,335 39,854 43,899 43,116 103,234 82,970Undrawn 37,440 19,701 3,341 3,330 40,781 23,031Other2 13,712 6,149 2,341 2,289 16,053 8,438Total 110,487 65,704 49,581 48,735 160,068 114,439

Drawn 24,347 4,484 10,328 2,946 34,675 7,430Undrawn 14,729 2,776 135 33 14,864 2,809Other2 15,944 2,528 406 179 16,350 2,707Total 55,020 9,788 10,869 3,158 65,889 12,946Drawn 4,678 178 10,649 3,276 15,327 3,454Undrawn 1,092 93 234 34 1,326 127Other2 296 8 0 0 296 8Total 6,066 279 10,883 3,310 16,949 3,589Drawn 88,360 44,516 64,876 49,338 153,236 93,854 110,484Undrawn 53,261 22,570 3,710 3,397 56,971 25,967 21,062Other2 29,952 8,685 2,747 2,468 32,699 11,153 15,395Total 171,573 75,771 71,333 55,203 242,906 130,974 146,941Drawn 91,720 2,163 21,294 6,661 113,014 8,824 39,273Undrawn 2,489 33 0 0 2,489 33 0Total 94,209 2,196 21,294 6,661 115,503 8,857 39,273Drawn 14,029 469 14,029 469 7,568Undrawn 21 3 21 3 0Total 14,050 472 14,050 472 7,568Drawn 11,863 3,830 11,863 3,830 11,339Undrawn 8,004 784 8,004 784 0Total 19,867 4,614 19,867 4,614 11,339Drawn 9,619 4,195 12,988 9,351 22,607 13,546 21,607Undrawn 33 25 129 97 162 122 0Total 9,652 4,220 13,117 9,448 22,769 13,668 21,607Drawn 127,231 10,657 34,282 16,012 161,513 26,669 79,787Undrawn 10,547 845 129 97 10,676 942 0Total 137,778 11,502 34,411 16,109 172,189 27,611 79,787

Equities 2,911 5,116 2,911 5,116 2,911Securitizations 32,098 4,603 32,098 4,603 6,518Trading derivatives 19,252 7,125 19,252 7,125 6,077Other Assets 19,773 10,516 19,773 10,516 9,745Total Credit Risk, before scaling factor 363,612 104,117 125,517 81,828 489,129 185,945 251,979Add-on for 6% scaling factor3 6,247 6,247Total Credit Risk 363,612 110,364 125,517 81,828 489,129 192,192 251,979(1) Net of related allowances for credit losses.(2) Other exposures include lending instruments such as letters of credit, letters of guarantee, etc., OTC derivatives and repo-style exposures, after collateral.(3) Basel Committee imposed scaling factor (6%) on risk weighted assets for Internal ratings based credit risk portfolios.

RISK-WEIGHTED ASSETS FOR CREDIT RISK PORTFOLIOS

Retail residential mortgages

Home Equity Lines Of Credit (HELOCs)

Qualifying Retail Revolving Exposures (QRRE)

Other Retail

Corporate

Bank

Sovereign

Non-retail

Internal Ratings Based

Retail

StandardizedBasel II Exposure Type

Total

July 31, 2008Basel II

Basel I

Page 23

($MM)

Basel II Exposure Sub-type

Exposure at Default


Exposure at Default1


Exposure at Default



Credit Risk - non tradingDrawn 59,333 38,925 41,729 41,188 101,062 80,113Undrawn 37,106 19,663 3,543 3,498 40,649 23,161Other2 12,832 5,622 2,197 2,149 15,029 7,771Total 109,271 64,210 47,469 46,835 156,740 111,045

Drawn 24,591 4,498 8,541 3,300 33,132 7,798Undrawn 15,050 2,986 128 62 15,178 3,048Other2 14,794 2,389 421 173 15,215 2,562Total 54,435 9,873 9,090 3,535 63,525 13,408Drawn 4,146 276 9,993 2,633 14,139 2,909Undrawn 990 67 171 31 1,161 98Other2 347 8 105 0 452 8Total 5,483 351 10,269 2,664 15,752 3,015Drawn 88,070 43,699 60,263 47,121 148,333 90,820 106,986Undrawn 53,146 22,716 3,842 3,591 56,988 26,307 19,713Other2 27,973 8,019 2,723 2,322 30,696 10,341 13,103Total 169,189 74,434 66,828 53,034 236,017 127,468 139,802Drawn 88,208 2,011 19,286 6,140 107,494 8,151 36,882Undrawn 3,794 42 0 0 3,794 42 0Total 92,002 2,053 19,286 6,140 111,288 8,193 36,882Drawn 13,437 457 13,437 457 6,718Undrawn 0 0 0 0 0Total 13,437 457 13,437 457 6,718Drawn 11,741 3,818 11,741 3,818 11,636Undrawn 8,076 747 8,076 747 0Total 19,817 4,565 19,817 4,565 11,636Drawn 9,193 4,007 10,457 7,500 19,650 11,507 19,120Undrawn 32 24 104 78 136 102 0Total 9,225 4,031 10,561 7,578 19,786 11,609 19,120Drawn 122,579 10,293 29,743 13,640 152,322 23,933 74,356Undrawn 11,902 813 104 78 12,006 891 0Total 134,481 11,106 29,847 13,718 164,328 24,824 74,356

Equities 2,848 4,538 2,848 4,538 2,848Securitizations 33,613 3,925 33,613 3,925 6,615Trading derivatives 21,773 7,735 21,773 7,735 7,060Other Assets (4) 19,067 10,652 19,067 10,652 9,790Total Credit Risk, before scaling factor 361,904 101,738 115,742 77,404 477,646 179,142 240,471Add-on for 6% scaling factor3 6,104 6,104Total Credit Risk 361,904 107,842 115,742 77,404 477,646 185,246 240,471(1) Net of related allowances for credit losses.(2) Other exposures include lending instruments such as letters of credit, letters of guarantee, etc., OTC derivatives and repo-style exposures, after collateral.(3) Basel Committee imposed scaling factor (6%) on risk weighted assets for Internal ratings based credit risk portfolios.

Other Retail

Retail

Basel II Exposure Type

Non-retail

Basel IIBasel I

Internal Ratings Based

RISK-WEIGHTED ASSETS FOR CREDIT RISK PORTFOLIOS

Retail residential mortgages

Home Equity Lines Of Credit (HELOCs)


Corporate

Bank

Sovereign

Standardized

April 30, 2008

Total

Page 24

($MM)

Drawn Undrawn Other Exposures (2) Total

Canada 189,209 44,014 13,996 247,219USA 22,323 16,730 11,220 50,273Mexico 13,823 319 1,236 15,378Other International 89,394 6,584 6,247 102,225Total 314,749 67,647 32,699 415,095

($MM)

Drawn Undrawn Other Exposures (2) Total

Canada 180,803 44,566 13,498 238,867USA 21,813 16,958 9,624 48,395Mexico 12,230 384 796 13,410Other International 85,813 7,085 6,775 99,673Total 300,659 68,993 30,693 400,345

(2) Other exposures include lending instruments such as letters of credit, letters of guarantee, etc., OTC derivatives and repo-style exposures, after collateral.

(1) Geographic segmentation is based upon the location of the ultimate risk of the credit exposure. Includes all credit risk portfolios and excludes equities, securitizations, and trading derivatives.

CREDIT RISK EXPOSURES BY GEOGRAPHY (1)

July 31, 2008

April 30, 2008

Page 25

($MM)

Corporate Bank Sovereign Total Residential Mortgages

Other Retail Total

0% 687 237 7,556 8,480 - 4,982 313 5,295 -

20% 216 9,341 21 9,578 1,916

35% 14,045 457 14,502 5,076

50% 16 5 - 21 11

75% - - - - - 2,089 12,256 14,345 10,759

100% 48,617 1,286 3,306 53,209 53,209 178 81 259 259

150% 45 0 - 45 67 - 10 10 15 Total 49,581 10,869 10,883 71,333 55,203 21,294 13,117 34,411 16,109

($MM)

Corporate Bank Sovereign Total Residential Mortgages

Other Retail Total

0% 484 90 7,588 8,162 - 4,283 258 4,541 - 20% 199 6,828 22 7,049 1,410 35% 12,844 460 13,304 4,656 50% 15 4 - 19 10 75% - - - - - 2,058 9,747 11,805 8,854

100% 46,738 2,168 2,659 51,565 51,565 101 74 175 175 150% 33 - - 33 49 - 22 22 33

Total 47,469 9,090 10,269 66,828 53,034 19,286 10,561 29,847 13,718

(1) Net of allowances for credit losses, after credit risk mitigation.

April 30, 2008

Risk Weight

Non-Retail Retail

Exposure at Default (1)



Risk-Weighted Assets

CREDIT RISK EXPOSURES BY RISK WEIGHT - STANDARDIZED APPROACH

Risk-Weighted Assets

July 31, 2008

Risk Weight

Non-Retail Retail




Page 26

Credit Potential Credit Risk Credit Risk Credit RiskNotional Risk Future Equivalent Notional Equivalent Notional Equivalent

($MM) Amount Amount Exposure Amount Amount Amount Amount Amount

Interest Rate Contracts:Futures and Forward Rate Agreements 129,280 13 - 13 115,741 29 141,204 51 Swaps 674,394 6,436 3,301 9,737 620,573 9,670 612,806 8,715 Options Purchased 77,871 262 68 330 124,802 360 97,387 340 Options Written 62,531 - - - 64,264 - 50,832 -Foreign Exchange Contracts:Futures, Spot and Forwards 265,464 4,075 2,623 6,698 272,166 7,389 314,781 9,710 Swaps 108,302 6,404 5,183 11,587 104,457 12,362 105,622 12,131 Options Purchased 3,810 186 55 241 3,733 184 2,851 156 Options Written 4,431 - - - 4,029 - 3,154 -Other Derivative Contracts:Equity 41,582 1,414 2,296 3,710 46,913 5,343 37,200 3,649 Credit 110,206 4,216 6,582 10,798 108,500 9,518 111,336 9,637 Other 7,092 498 542 1,040 7,426 1,077 6,642 880

- -Total Derivatives 1,484,963 23,504 20,650 44,154 1,472,604 45,932 1,483,815 45,269

Less: Impact of Master Netting Agreements, Collateral (1) 14,253 7,763 22,016 20,516 21,663

Total after Netting & Collateral (1) 9,251 12,887 22,138 25,416 23,606

Total Risk Weighted Assets 7,867 8,708 10,745

January 31, 2008

(1) Comparative amounts for Q1/08 have been reclassified to conform with the current presentation.

April 30, 2008

DERIVATIVES

July 31, 2008

Page 27

Glossary

EAD Exposure at Default Generally represents the expected gross exposure of the facility upon default of the obligor for both on-balance sheet and off-balance sheet exposures.

PD Probability of Default Expressed as a percentage, measures the likelihood that a borrower will default within a 1-year time horizonLGD Loss Given Default Expressed as a percentage of exposure at default, measures the severity of loss on a facility in the event of a borrower's default

M Effective Maturity Represents the maximum remaining time (in years) that the borrower is permitted to take to fully discharge its contractualobligation. Effective maturity is generally subject to a 1 year floor and 5 year cap (except for repo-style transactions).

Corporate Defined as a debt obligation of a corporation, partnership, or proprietorshipBank Defined as a debt obligation of a bank or bank equivalent (including certain public sector entities (PSEs) treated as Bank

equivalent exposures)Sovereign Defined as a debt obligation of a sovereign, central bank, certain Multi Development Banks (MDBs) and certain PSEs treated

as Sovereign.Ownership interest in a corporation in the form of common stock or preferred stock.Includes liquidity lines to Bank’s own sponsored and third party ABCP Conduits, credit enhancements and on- balance sheetinvestments in asset backed securities, mortgage backed securities, and collateralized debt obligations.

Residential Mortgages Loans to individuals against residential property (four units or less)Home Equity Lines Of Credit (HELOCs)

Revolving personal lines of credit secured by home equity


Includes credit cards and unsecured line of credit for individuals

Other Retail Includes all other personal loans

Outstanding amounts including all loans and loan related products, deposits with banks (DWBs), leases and bankersacceptancesUnutilized portion of an authorized credit lineSecurities reverse repurchase agreements (reverse repo) and repurchase agreements (repos), securities lending andborrowing.Comprises all over-the-counter derivatives contracts (i.e. excludes exchange-traded derivative contracts and written options asthey have no counterparty credit risk).Comprises all off-balance sheet arrangements other than derivatives, securities lending and borrowing and undrawncommitments (e.g. direct credit substitutes, standby letters of credits, guarantees, trade letters of credits, transaction relatedcontingencies etc.)

Repo-Style

OTC derivatives

Other Off Balance Sheet

EquitySecuritization

Drawn

Undrawn

Retail

Exposure Sub-types

Credit Risk Parameters

Exposure TypesNon-retail

Page 28

SUPPLEMENTARY FINANCIAL INFORMATION - Scotiabankorigin.scotiabank.com/ca/common/pdf/about_scotia/supplementary18660.pdf · ($ MM) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2008 2007 2007 2006 CONSOLIDATED

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